You are a financial analyst for Big Oil Corporation. estimating the firm's weighted average cost of capital for a new project. You put together the following information for your analysis: - target financial structure is 45% debt and 55% equity - pre-tax cost of debt is 7.5%, tax rate is 25% - the next dividend is expected to be \#2.50 per share - dividends are expected to grow at a constant rate of 5.50% a year - common share price is currently $87.50 a share. What is the company's WACC if all the equity used is from retained earnings? 5.10% 6.62% 7.13% 5.69% 7.35%